€60 million: Kormotech expands operations in Lithuania

Ukrainian pet food producer Kormotech is expanding operations in its production plant in the Lithuanian city of Kėdainiai, 145 km from the country’s capital, Vilnius.

The firm is investing over €60 million ($64M) across 4 production stages, which will be completed between 2025 and 2028. This includes expanding the current plant to 4,500 square meters.

Kormotech’s CEO and Co-Owner Rostyslav Vovk told GlobalPETS that the Lithuanian plant is an “important element” to the company’s ecosystem while the situation in Ukraine continues.

Vovk notes that the Lithuanian plant “consistently operates” at full capacity and bridges the gaps when Ukrainian plants experience disruptions.

“At the moment, Lithuania has become Kormotech’s gateway to the region,” he adds.

40,000 tons per year

Currently, the plant in Kėdainiai specializes in wet pet food and produces 20,000 tons per year. After the investment, Kormotech wants to double this amount to 40,000 tons.

The Ukrainian pet food manufacturer expects the company to launch its first production line at the expanded site by 2025, adding one line every year until 4 production lines are in operation by 2028.

The new project expansion has already exceeded initial plans, which included hiring 70 employees. Now Kormotech will employ more than 170 specialists to help run operations.

Lithuanian-based success 

The plant in Kėdainiai is located in a Free Economic Zone, where companies operating in these zones are taxed lightly.

Andrii Berezyuk, Director of Kormotech UAB, called their Lithuanian operations a “success,” with both production and sales goals “achieved and exceeded.”

Kormotech has also received support from the agency Invest Lithuania, which led the firm to expand its facility in the country.

Earlier in October, the company launched a venture arm to help pet care companies seeking investment across Europe and the US.